After investigation, audit finds LP&L acted fairly in bidding process

Lubbock Power & Light acted fairly in a bidding process for energy services, according to an independent investigation following accusations of bid rigging.

Lubbock’s Electric Utility Board discussed the investigation relating to the municipal power company’s search for a new power supplier in 2019 during a meeting Tuesday afternoon, Jan. 21.

“Our firm finds there is no evidence of criminal activity on behalf of Lubbock Power & Light,” said Johnny Sutton, an investigator with the Ashcroft Law Firm. “... The firm finds LP&L to have developed a fair, impartial and confidential process by which to locate a vendor to serve its power needs beginning in 2019.”

The board is currently in the early stages of seeking a new wholesale energy provider after LP&L’s contract with Xcel Energy expires in five years. As is standard procedure for governing bodies, they’re selecting a company through a request-for-proposal process.

They agreed in November to hire the Ashcroft firm in response to allegations of improper communication from LP&L staff that could have given a prospective bidder an unfair advantage.

Sutton said his firm’s investigation contained interviews with LP&L staff, certain city officials and current and past EUB board members and reviews of requests for proposals, LP&L documents and internal emails.

LP&L spokesman Matt Rose said the bidding process that was placed on hold during the investigation will likely return in the near future.

“This is just step one of a very long process,” he said. “...We will be moving forward with as much public involvement as we can have.”

Sutton also said his firm determined certain normally confidential information such as bidders’ names concerning a request for proposal had somehow become public. Investigators were unable to determine the source of that leak, he said, and had no evidence it came from LP&L staff.

Rose said he could not immediately recall the exact cost of the investigation, but noted taxpayers were unaffected because LP&L is funded by utility payments, not tax dollars.

EUB chairman Greg Taylor said he anticipates an upcoming work session will help determine the next step. Selecting the right power company is a major responsibility that could be time consuming during the next few months, he said.

“We’ve got a lot of work to do,” he said. “It was important to get that report today and go forward ... We think it’s important to be as transparent as we can with the citizens of Lubbock — we want to assure them we’re doing the best we can to keep the lights on.”